Cyber Threats Now Top Reputational Risk for Corporations
A comprehensive new study has revealed that cyber threats have become the most significant risk to corporate reputation, surpassing environmental concerns. The 2024/25 Reputational Risk Readiness Survey conducted by Willis, a WTW business, gathered responses from 500 senior executives worldwide and found that 65% identified cyber attacks as the primary reputational risk, a significant increase from 52% in 2023.
Environmental concerns followed closely, with 64% of respondents citing them as a major risk, up from 52% the previous year. Governance and social impact risks were also noted more frequently, with 56% and 47% of respondents flagging them, respectively. These increases are occurring amid evolving regulatory requirements and shifting stakeholder expectations across various jurisdictions.
Despite the perceived risks, many organizations continue to weigh reputational exposure against potential business benefits. According to the survey, 57% of executives said they would accept a degree of reputational risk if the activity aligns with business objectives, with 69% assessing such situations on a case-by-case basis. Most organizations (94%) reported having budget reserves to address reputational issues. However, confidence in modeling the financial impact of such events has declined, with only 11% of respondents stating their organizations have strong capabilities to forecast the financial implications of a reputational event.
While confidence in predictive modeling has weakened, many organizations appear to be investing in crisis readiness. The survey found that 87% have a formal crisis response team guided by performance metrics, and 91% conduct annual drills to test communication plans. Industry experts note a gap between operational readiness and analytical insight. “The results of the survey show that while crisis response teams are more robust than ever, modeling capabilities still lag,” said David Bennett, head of reputational risk management at Willis.
Experts recommend that companies develop strong risk management processes, including sentiment tracking and risk intelligence, to build resilience. “Leading businesses are managing reputation as an operational and financial risk, and have moved away from viewing it as a branding exercise,” said Garret Gaughan, managing director at Willis. The survey’s findings highlight the need for organizations to enhance their analytical capabilities while maintaining robust crisis response plans.
